Housing Bubble

Weekend Reading

  • Must read: Fast-on-the-draw trades need spot of marshalling (FT, h/t Joe)
  • Roubini Op-Ed on Bernanke: The Great Preventer (NYT)
  • Lennar signals fleeting buildling rally as buyers flee (Bloomberg)
  • JP Morgan to raise banker salaries (FT)
  • The man spreading false rumors about Harman and Textron takeovers (that fooled fast-money's Najarian) found dead in suicide (Bloomberg)
  • Chinese steel executive beaten to death,  (FT)
drhousingbubble's picture

Anytime someone tells you that a mortgage is less risky than “subprime” you know you have a problem. The Alt-A mortgage is largely absent from the current mainstream housing debate but is really the next wave that will further depress housing prices. Data produced from a June 2009 OTS and OCC report highlighting market conditions for 64 percent of U.S. mortgages finds that some 3.5 million loans are categorized as Alt-A. California issuing IOUs is home to many of the Alt-A mortgages.

Overalottment: June 24

  • Wall Street begins campaign to thwart populist overreaction (Bloomberg) [Zero Hedge soon to begin campaign to thwart this campaign]
  • $27 billion of 7 Year USTs on deck (Bloomberg)
  • Deflating our way to Posterity (Dr. Housing Bubble)
  • Harry Schultz: Gold confiscatory bank holiday coming up? (MarketWatch, h/t Pere Ubu)
  • Treasury is overstating indirect bids at auctions (Reuters)
  • Saturday Readings

    • Commercial Real Estate - The economy's anvil (Time)
    • First ever global housing-led recession (Dr Housing Bubble)
    • Ralph Nader: Obama's GM plan looks like a raw deal (WSJ)
    • GM

    Overalottment: May 26

    • George Orwell headline of the day: Yen declines as signs of U.S.

    Merrill: "Retail REITs - Tough But Stabilizing"

    In his first note released in the post Sakwa world, Craig Schmidt continues to attempt to restore confidence in retail REITs. It would, after all, seem prudent to bang clients' heads into their desks until they see the light at the end of the tunnel (oncoming bullet train?) at a time when the only cash, and equity value, REITs can create is by raising expensive, dilutive equity in order to repay the cheapest form of capital (that of secured loans previously held by Mr. Schmidt uber parent, Bank of America).

    CT Attorney General: "It's Time To Shatter The Old Boys Club Of Rating Agencies"

    For the few sane people who have been watching and recoiling with horror as Bernanke, Geithner and Bair implement their insidious "rich get richer" PPIP/TALF plan by relying exclusively on the AAA ratings of the very same rating agencies that were the primary cause of the current economic catastrophe (yes Steve Liesman, not the CDS market or CDS traders - the rating agencies) today was a glorious day.

    CT Attorney General: "It's Time To Shatter The Old Boys Club Of Rating Agencies"

    For the few sane people who have been watching and recoiling with horror as Bernanke, Geithner and Bair implement their insidious "rich get richer" PPIP/TALF plan by relying exclusively on the AAA ratings of the very same rating agencies that were the primary cause of the current economic catastrophe (yes Steve Liesman, not the CDS market or CDS traders - the rating agencies) today was a glorious day.

    Was Obama A Subprime Borrower?

    A humorous if somewhat serious post by scrivener.net, which analyzes whether the current President would have benefited from the ongoing mortgage relief plan, assorted bankruptcy initiatives and other programs set in place to make life for subprime borrowers easier, especially if a butterfly had flapped its wings in China between 5 and 10 years ago. The answer is...

    Late Day Chartology

    Some relevant charts to back up the greenness (or lack thereoff) of any shoots that may have appeared today (compliments of Alex).